Courtesy of Benzinga.
Cytec Industries Inc. (NYSE: CYT) announced today it has entered into a definitive merger agreement with Brussels-based Solvay (OTC: SVYZY). The total cash consideration will amount to US$5.5 billion, corresponding to an enterprise value of US$6.4 billion. The transaction price per share of $75.25 represents a premium of 28.9% compared to our closing price of $58.39 on July 28, 2015 and a premium of 26.9% compared to the volume weighted average closing share price over the last three months. Shane Fleming, Chairman, President and Chief Executive Officer commented, “We are excited to be joining a preeminent global chemical company with leading market positions and a similar growth strategy to Cytec’s. This union will enhance our businesses ability to drive their strategy of value creation through strengthening and leveraging our market and technology leadership positions in high growth end markets.” Jean-Pierre Clamadieu, CEO of Solvay, commented, “This merger marks a major step toward Solvay’s portfolio upgrade and enables us to strengthen our technology offerings to include advanced materials technology for the aerospace and automotive industries as well as integration of Cytec’s specialty chemical portfolio into our existing line of advanced formulations.
